FPIs Pull $1.96 Billion from Indian Equities in Dec; BFSI, IT Hit Hardest

• Foreign Portfolio Investors (FPIs) withdrew $1.96 billion from Indian equities in the first half of December 2025, an unusual move for the month.
• BFSI, IT, and Services sectors saw the highest outflows, with BFSI losing approximately $718 million.
• Buying was observed in Oil & Gas ($331M) and Metals & Mining ($89M), indicating selective investment.
• Reasons include rupee depreciation (91/dollar), India-US trade deal delays, and concerns over India's GDP growth and fiscal health.
• The outflow is seen as disciplined risk management rather than panic, but signals caution and potential market shifts.

Why It Matters: FPIs pulled $1.96 billion from Indian markets in December, signaling caution due to rupee, global, and domestic factors.